Which One of the Following Is Not an Economic Benefit

question 111

Multiple Choice

Which one of the following is not an economic benefit provided by depository institutions?

• A)pooling risk
• B)providing a place for reserve account deposits
• C)lowering the cost of monitoring borrowers
• D)lowering the cost of borrowing
• E)creating liquidity

Identify how fixed-rate mortgages operate and calculate the changes in principal and interest portions over time.

Analyze annuities, including their valuation and the differences between ordinary annuities and annuities due.

Understand the effects of compounding frequency on the future and present values of investments.

Apply knowledge of financial calculations, including present value, future value, and interest rate to real-world scenarios.

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Definitions:

Procedural Memories

Procedural memories are a type of long-term memory for performing certain actions and skills, essentially how to do things, such as riding a bicycle or playing an instrument.

Long-Term Memories

Memories that can be stored for an extended period, from days to decades.

Hippocampus

A major component of the brains of humans and other vertebrates, playing critical roles in the consolidation of information from short-term memory to long-term memory and in spatial memory that enables navigation.

Procedural Memories

A type of long-term memory that involves how to perform different actions and skills essentially, how we remember to do things.